ILWs

The increased yield reflects the harder post-Ian market.

The Lloyd’s insurer is seeking $100mn from its latest issuance, which features a narrower scope of coverage, as carriers prepare for a harder reinsurance renewal.

For larger top-end ILW triggers, cedants may have to be pragmatic on rolling over capital.

Lower-attaching Florida ILWs had been more in demand at this year’s mid-year renewals.

The cat bond market has a high level of exposure to Florida wind risk.

Amid a wide range of industry loss estimates, it is clear that ILS trapped capital will be a major issue for 2023 with back-of-the-envelope calculations suggesting at least double-digit billions held.

Florida domestic insurers have around $2.5bn of on-risk cat bonds, with flood and other ILW based deals exposed to the storm.

The former Gallagher Re broker is the second departure from the firm in Bermuda since the Willis Re sale.

The ratings firm also predicted that ILS losses from Covid-19 would remain limited.

The Sompo International company was placed into run-off in June 2019.

The industry is sharpening its exposure forecasting capabilities in response to investor demand.

HSCM has had a majority stake in the company since 2020.